Understanding Annual Leave in UAE: A Guide to the Leave Policy in UAE Labour Law (2025)

annual leave in use labour law leave policy

16-12-2024

Introduction: Annual Leave Policy in the UAE Labour Law

Annual Leave in UAE is a crucial component of employee rights, ensuring that workers have a guaranteed period to rest and rejuvenate. Whether you're an employer or an employee in the UAE, it's important to understand how the Annual Leave Policy in UAE works. This policy is designed to ensure that employees get the necessary time off from work for a proper work-life balance. With the increasing work demands, annual leave helps employees recover, manage stress, and maintain high performance at work.

Under the UAE Labour Law, employees are entitled to 30 days of paid annual leave once they complete one full year of service, particularly the Federal Decree-Law No. (33) of 2021. This law guarantees that workers can enjoy a break from their work responsibilities, whether to relax, travel, or spend time with loved ones.

What is Annual Leave in UAE?

Annual Leave refers to the paid time off that employees are entitled to each year under the law. It allows employees to take a break from their job duties and recharge. The Annual Leave Policy in UAE ensures that employees have the right to this rest period, promoting better mental health, job satisfaction, and overall productivity. This time off is crucial for preventing burnout and helping employees return to work feeling refreshed and motivated.

Employees in the UAE can use their annual leave for various purposes, such as taking vacations, spending time with family, or simply resting at home. By providing annual leave, businesses can also ensure that their workforce remains motivated and committed.

Understanding the Labour Law regarding leave policies is essential for both employees and employers to ensure smooth operations and compliance with the law. This article will help you understand the key aspects of Annual Leave in UAE, how it works, and how it benefits both employees and employers.

Annual Leave Policy in UAE Labour Law

Duration of Annual Leave in UAE

Article 29 of the Federal Decree-Law No. (33) of 2021 clearly states that every employee is entitled to 30 days of fully paid annual leave after completing one year of continuous service. However, employees who have completed six months of service but not yet one year are entitled to two days of annual leave for each month worked.

If an employee is terminated before using all of their annual leave, they will be entitled to leave for a fraction of their final year of service. The calculation for the leave balance depends on the number of months worked. This ensures that employees are not deprived of their rightful leave.

Flexibility in Annual Leave Policy in UAE

The law also provides flexibility regarding the annual leave policy in UAE. Employees can carry over unused leave to the next year with the employer's approval. If unused leave is accumulated for more than two years, the law gives employees the option to receive a cash payment instead of taking time off. This provides both employees and employers with a way to manage leave according to their specific needs.

Additionally, part-time workers are also entitled to annual leave in UAE, but the amount is determined based on the working hours specified in their employment contracts.

Use of Annual Leave in UAE

Employees must take their annual leave within the year it is granted. Employers, however, can set the leave dates based on company requirements, provided employees are notified at least one month in advance. This helps employees plan their time off effectively.

Employers cannot prevent employees from using their annual leave for more than two years. Upon the termination of employment, any unused leave will be paid out based on the employee's basic salary.

Key Points to Remember about Annual Leave Policy in UAE Labour Law

Annual leave in UAE is calculated based on service duration: 30 days after one year of continuous service or two days for each month worked if less than a year.
Employers must notify employees about their leave at least a month in advance.
Unused leave can be carried forward, but it’s mandatory to use it within two years.
Part-time employees are entitled to annual leave, based on their working hours.

Other Types of Leaves in the UAE - Leave Policy UAE

The Labour Law in the UAE outlines various types of leave beyond annual leave. These leaves address specific needs that may affect an employee’s availability for work. Here are some of the specialized leave categories:

Leave in UAE #1 - Sabbatical Leave

In the UAE, Sabbatical Leave is a type of paid time off that functions similarly to annual leave. However, unlike annual leave, only Emirati workers are eligible for this specific leave. While sabbatical leave is often associated with academia in many countries, its purpose in the UAE is related to national service.

As per Article 32 of the Federal Decree-Law No. (33), national workers (Emirati citizens) are entitled to sabbatical leave for the duration of their national service. National service, which is compulsory for male Emiratis and optional for females, lasts between 11 months and three years. To apply for this leave, workers must submit proof from the relevant authorities to confirm their eligibility.

This form of leave ensures that workers can fulfill their national duty without sacrificing their employment, highlighting the UAE's commitment to both national service and employee welfare.

Leave in UAE #2 - Study Leave

In the UAE, career development and continuous learning are highly valued. To support employees in their educational journeys, the Labour Law offers the option of study leave.

As per Article 32 of the Federal Decree-Law No. (33), employees who have worked for at least two years are entitled to take up to ten working days of study leave each year. This leave is specifically for sitting exams at approved educational institutions within the UAE.

This leave ensures that employees can balance their career growth with personal development opportunities while maintaining productivity at work. Study leave in the UAE plays an essential role in empowering employees to enhance their skills, which ultimately contributes to their professional success and the success of their organizations.

Leave in UAE #3 - Sick Leave Policy

In the UAE, employees become eligible for sick leave after completing their probationary period. The sick leave can be used either continuously or intermittently, with a maximum of 90 days per year. The payment structure for sick leave is as follows: employees will receive full pay for the first 15 days, half pay for the next 30 days, and no pay for the remaining 45 days.

During the probationary period, sick leave may still be granted, but without pay, unless the employee provides a medical report from an authorized medical entity stating that it is necessary. It’s important to note that this sick leave does not cover illnesses caused by work-related injuries.

There are certain situations where an employee is not entitled to paid sick leave. These include:

During the probationary period
If the illness is caused by the employee’s misconduct, such as alcohol or drug use
If the employee violates safety protocols or regulations that were made clear to them.

According to Article 31 of the UAE Labour Law, employees are required to inform their employer about their sickness within three days and submit a medical report from a certified medical provider confirming their condition.

While on sick leave, employees cannot be terminated. However, if an employee exhausts their 90-day sick leave and is still unable to return to work, the employer has the right to terminate the employee’s contract. In this case, the employee is entitled to receive end-of-service benefits as stipulated in the UAE Labour Law.

This system ensures that employees are supported during illness while maintaining a balance between employee welfare and employer needs.

Leave in UAE #4 - Maternity Leave Policy in UAE

The maternity leave policy in the UAE offers specific benefits to female workers. Under the UAE Labour Law, female employees are entitled to 60 days of maternity leave, with 45 days fully paid and the remaining 15 days paid at half salary. Maternity leave in UAE can be requested up to 30 days before the expected delivery date.

In the event of complications related to pregnancy or childbirth, female employees are eligible for an additional 45 days of unpaid maternity leave. A medical certificate from the relevant authorities is required for this extension. Additionally, if the child becomes sick or has a disability, the mother can take another 30 days of paid leave, which can be extended for another 30 days without pay, provided she presents a medical certificate.

Upon returning to work, female workers are entitled to one or two breaks per day to nurse their child. These breaks are fully paid and can last for up to six months from the date of delivery.

Importance of Maternity Leave in UAE

The maternity leave policy in UAE is vital for supporting women in balancing work and family responsibilities. It ensures that new mothers have the time they need to recover from childbirth and care for their newborn, promoting both physical and mental well-being. The leave provisions also acknowledge the challenges of postpartum recovery, such as hormonal imbalances and emotional health.

As the UAE continues to evolve its Labour Law, understanding and complying with these provisions remains crucial for employers and employees alike. The maternity leave policy in UAE ensures a supportive and fair work environment, helping female employees maintain a healthy work-life balance.

Leave in UAE #5 - Compassionate Leave

The UAE Labour Law recognizes that the loss of a loved one is a deeply emotional and challenging experience. To support employees during this difficult time, the Labour Law provides for compassionate leave. This type of leave allows employees to take time off work to mourn and handle necessary arrangements, such as burial or cremation.

As outlined in Article 32 of the Federal Decree-Law No. (33), employees are entitled to compassionate leave upon the death of close family members. In the case of the death of a spouse, employees are granted five days of paid leave. For the death of a child, sibling, parent, or grandparent, the employee is allowed three days of paid leave. The leave period begins on the day of death.

This provision ensures that employees can focus on their personal well-being and family matters during a difficult time, without the added stress of work obligations. Understanding and respecting the compassionate leave policy in the UAE is essential for businesses to foster a supportive work environment.

Leave in UAE #6 - Hajj and Umrah Leave

Hajj is one of the five pillars of Islam, and every Muslim is required to undertake this pilgrimage at least once in their lifetime. In the UAE, Hajj leave is considered an essential right for Muslim employees. According to the UAE’s official regulations, private sector employees are entitled to take up to 30 days of leave for Hajj. However, unlike other types of leave, this is unpaid and can only be granted once during the employee's employment with the company.

It’s important to note that while Hajj leave is legally mandated, there are no provisions for Umrah leave. If an employee wishes to perform Umrah, they must request unpaid leave or choose to deduct the days from their annual leave.

This type of leave is a significant consideration for employees practicing Islam, and understanding the leave policy in UAE for such religious purposes is crucial for both employees and employers.

Leave in UAE #7 - Parental Leave

In a significant move that highlights its progressive approach, the UAE introduced parental leave, becoming the first Arab country to do so. As per Article 32 of the Federal Decree-Law No. (33), parents of newborns are entitled to 5 days of fully paid leave. This leave must be taken within six months of the child’s birth. The introduction of this leave is a part of the UAE’s ongoing efforts to support work-life balance and family welfare. The parental leave policy in UAE is a great example of how the country is evolving its labour laws to ensure fairness and employee well-being.

The parental leave in UAE is available to both mothers and fathers, offering a significant step toward creating a more inclusive and family-friendly workforce. As businesses continue to adapt to these changes, understanding and implementing the parental leave policy ensures compliance and supports employees during key life events.

Leave in UAE #8 - Official National Holidays

According to Article 28 of the Labour Law in the UAE, employees are entitled to paid days off on national holidays designated by the Cabinet. These holidays include Eid Al Fitr, Arafah Day, New Year’s Day, Eid Al Adha, Hijri New Year, Prophet Mohammed’s birthday, Commemoration Day, and National Day.

If employers require workers to work on these official national holidays, they must provide compensation. The compensation can either be:

A substitute day off
A wage of at least 150% of the employee's basic salary for the day worked

This is an important part of the Labour Law, ensuring that employees are properly compensated for working during these culturally and nationally significant days. Understanding the Labour Law helps both employees and employers to manage leave policies effectively.

Leave in UAE #9 - Bereavement Leave:

In the UAE, employees are entitled to bereavement leave to mourn the death of a close family member. According to the Labour Law, employees are granted compassionate leave (also known as bereavement leave) for specific family losses.

Employees in the private sector are eligible for:

Five days of paid leave if their spouse passes away.
Three days of paid leave if a parent, child, sibling, grandchild, or grandparent passes away.

This leave provides employees the necessary time to grieve and take care of family matters during a difficult time.

Leave in UAE #10 - Special Leave:

Employees may be eligible for special leave in certain circumstances such as marriage, relocation, or other personal events. The conditions and availability of this leave depend on the individual company’s policies. Special leave is not universally mandated by the Labour Law, but many companies offer it to accommodate their employees' personal needs.

By understanding the leave policies in UAE, businesses can ensure compliance while supporting employees during critical personal moments.

Disclaimer: The opinions expressed in this blog are solely those of the respective authors and do not represent the views or endorsement of TimeChart. While we strive to ensure the factual accuracy of the information provided, inaccuracies may occur due to changes in legislation or human error. It is important to note that TimeChart does not assume any responsibility for actions taken based on the information presented in this blog. We strongly recommend seeking professional advice to ensure the best possible solution for your individual circumstances and verifying the information from official government sources.

How to Calculate Leave Salary in UAE

Calculating leave salary in UAE is a clear process based on the employee’s salary and their annual leave entitlement. Understanding the rules under the Labour Law in the UAE ensures that both employees and employers stay compliant with the rules for paid leave. The annual leave is calculated using the full salary, which includes basic pay and any additional allowances like housing or transport.

Important Rules to Remember while Calculating Leave Salary in UAE:

The employer is required to pay the employee their full salary before the annual leave starts.
Leave calculations are based on the employee's monthly salary, including basic salary and allowances.
The employer must compensate the employee for their annual leave before they take the time off.

Example Cases for Leave Salary Calculation in UAE

Case 1: Full 30-Day Annual Leave after Completing 12 Months of Employment

If an employee has worked for 12 months and is eligible for a 30-day annual leave, the leave salary will include the basic salary plus any allowances. Here's how to calculate it:

Leave Salary = (Basic Salary + Allowances ÷ 30) x Number of Leave Days

For example:

Scenario 1: An employee earning AED 8,000 per month (basic salary plus allowances) takes a 30-day leave. The calculation is:
```
Leave Salary = (8,000 ÷ 30) x 30 = AED 8,000
```
So, the employee would receive their full salary of AED 8,000.
Scenario 2: If the same employee decides to take 20 days of leave, the leave salary would be:
```
Leave Salary = (8,000 ÷ 30) x 20 = AED 5,333.33
```
In this case, the employee would receive AED 5,333.33 for the 20 days of leave.

Case 2: Annual Leave Salary at Termination

When an employee claims annual leave salary upon termination after working for 12 months, the Labour Law states that only the basic salary is considered in the calculation. Additional allowances are excluded.

Scenario: If an employee’s basic salary is AED 6,000, and they are entitled to 15 days of annual leave upon termination, the calculation would be:
```
Leave Salary = (6,000 ÷ 30) x 15 = AED 3,000
```
So, the employee will receive AED 3,000 for their annual leave upon contract termination.

Case 3: Employees Who Have Worked 6 to 12 Months

Employees who have worked for more than six months but less than one year are entitled to 2 days of leave per month worked.

Scenario: If an employee has worked for 8 months, they would be entitled to:
```
8 months x 2 days/month = 16 days of leave
```
If the employee’s salary is AED 7,000, the leave salary for 16 days of annual leave would be calculated as:
```
Leave Salary = (7,000 ÷ 30) x 16 = AED 3,733.33
```

Case 4: Service Less Than 6 Months

Employees who have been employed for less than six months are not eligible for annual leave. Therefore, if an employee has worked only 4 months, they will not be entitled to any paid leave.

By following these examples, businesses can ensure they are calculating leave salary in UAE accurately and in line with the annual leave policy in UAE. This helps in reducing confusion and ensures employees are paid correctly for the time off they are entitled to.

How to Apply for Annual Leave in the UAE

Applying for annual leave in the UAE is an important process to ensure that employees take time off while maintaining compliance with the Labour Law. Employers and employees must follow clear guidelines when applying for annual leave to ensure smooth approval and accurate pay calculations.

Steps to Apply for Annual Leave:

Check Eligibility:

According to the Labour Law, employees are entitled to 30 days of paid annual leave after completing one year of continuous service with their employer.
For employees who have worked for less than a year, the leave is calculated based on 2 days of leave per month worked.

Submit a Leave Request:

Employees need to inform their employer of their intention to take annual leave by submitting a formal request.
The request is usually made in writing (via email or a leave application form) and should include the dates for the planned leave.

Approval from Employer:

The employer has the right to approve or deny leave requests based on business requirements and staffing needs.
If the leave request is approved, the employer should inform the employee in writing.

Leave Balance Check:

Before applying for leave, employees should check their leave balance to ensure they are eligible for the requested days off.
The leave balance is often monitored by the HR department or through digital time tracking systems.

Leave Application Form:

Depending on the company’s procedures, employees may be required to fill out a leave application form. This form typically includes:

Employee’s name and department
Dates of requested leave
Reason for leave (optional)
Signature of both the employee and supervisor

Finalizing the Leave:

After the leave is approved, the employee should receive confirmation.
The leave period is marked on the company's system, and the employee is paid according to the agreed terms for annual leave.

Returning to Work:

Upon completion of the annual leave, the employee should return to work as per the original schedule.
In some cases, the employee may need to submit a leave settlement form to finalize their leave records.

By following these steps, employees in the UAE can ensure that they apply for annual leave in accordance with the annual leave policy and the Labour Law in the UAE.

Email Template for Annual Leaves

Subject: Leave Request

Dear [Supervisor’s Name],

I hope this email finds you in good health. I am writing to formally request a [duration] leave of absence starting on [start date] and ending on [end date]. I have ensured that all responsibilities have been accounted for to minimize disruption during my time away.

The reason for my leave is [briefly mention your reason, e.g., personal, family, or medical]. To ensure a smooth transition, I have coordinated with my colleagues to cover any urgent tasks and responsibilities during my absence.

For any immediate needs, I can be reached at [your email address or phone number] and will periodically monitor my inbox. I have also attached the completed leave request form for your reference and approval. Please let me know if there are additional steps I should follow.

Thank you for your understanding and support. I look forward to your approval of my leave request.

Best regards,
[Your Name]
[Your Employee ID]
[Your Contact Information]

Leave Carry Forward in UAE: Rules and Regulations

What happens to unused annual leave in the UAE?

If you don’t use all your annual leave, the remaining days can either be carried forward or converted into payment, depending on the employer’s policy and the UAE’s labour laws. The annual leave policy in UAE is governed by Article 19 of Cabinet Resolution No. 1 of 2022 under Federal Decree Law No. 33 of 2021, which outlines how unused leave is managed.

Key Points About Leave Carry Forward:

Carry Forward Limitations:

Employees may carry forward up to 15 days of annual leave (or half of their total leave entitlement) to the next year.
This arrangement requires mutual agreement between the employee and employer.

Cash Compensation for Unused Leave:

Employees can request cash compensation for unused leave, calculated based on their basic salary.
Employers are permitted to provide this cash allowance either annually or as per mutual agreement.

Termination and Leave Balance:

If an employee resigns or their contract is terminated, they are entitled to compensation for any unused annual leave.
This payment is calculated based on the basic salary for the remaining leave days, including any fractions of the year worked.

Scenarios to Illustrate Leave Carry Forward and Compensation:

Scenario 1: Carrying Forward Unused Leave

An employee entitled to 30 days of annual leave only uses 15 days during the year. As per UAE law, the remaining 15 days can either be:

Added to the next year’s leave entitlement, or
Converted into a cash payment based on the basic salary.

Scenario 2: Payment for Unused Leave During Employment

If an employee earning AED 8,000 per month (basic salary) agrees with their employer for cash compensation for 10 unused days, the calculation would be:

Leave Payment = (8,000 ÷ 30) x 10 = AED 2,666.67.

Scenario 3: Termination and Leave Balance

An employee resigns after working for 18 months, with 10 unused leave days. Their basic salary is AED 6,500. The compensation for unused leave is calculated as:

Leave Payment = (6,500 ÷ 30) x 10 = AED 2,166.67.

Employer’s Role in Leave Management:

Employers have discretion over how employees take their annual leave. They may allow employees to split leave into intervals or take it all at once, depending on HR policies. In some cases, employers might even permit employees to take their leave every two years, as per Article 29 (8) of the UAE Employment Law.

Regulations on Leave Usage:

Employees must take their leave within the stipulated timeframe or agree on alternative arrangements with their employer.
Employers must ensure employees are compensated for unused leave, either as cash or through carry-forward policies, ensuring compliance with the Labour Law.

By following these guidelines, employers and employees can manage annual leave effectively while adhering to the annual leave policy in UAE. For more details, consult the UAE Labour Law or your company's HR department.

Use TimeChart Work Time and Attendance Software for Streamlined Leave Management

Simplify your leave application and approval process with TimeChart Work Time and Attendance software. Employees can apply for leave online, and managers can approve requests instantly through our user-friendly app. This tool ensures:

Quick Processing: Leave requests are submitted in seconds and approved without delays.
Accessibility: Applications and approvals are managed conveniently via mobile or desktop.
Transparency: Employees and HR teams can track leave balances and histories in real time.

TimeChart empowers businesses to save time, enhance communication, and maintain compliance with UAE labour regulations. Switch to efficient and paperless leave management today!

FAQS for Leaves in UAE

What types of leave are available for employees in the UAE?

Employees in the UAE are entitled to annual leave, sick leave, maternity leave, parental leave, compassionate leave, Hajj leave, and study leave under the UAE Labour Law.

How many days of annual leave can private sector employees take?

Employees with over six months of service are entitled to two days of leave for every month. After completing one year, they can take 30 days of annual leave.

What is the policy for sick leave in the UAE?

Employees are entitled to up to 90 days of sick leave per year, which includes 15 days at full pay, 30 days at half pay, and the remaining days unpaid.

What are the maternity leave entitlements in the UAE?

Female employees are entitled to 60 days of maternity leave, with 45 days on full pay and 15 days on half pay. They can also request additional unpaid leave for 45 days.

Can fathers take leave for childbirth?

Yes, fathers can take up to 5 days of paid parental leave within six months of the child’s birth.

What is compassionate leave, and how long can it be taken?

Employees can take 5 days of leave in case of the death of a close family member, such as a spouse, and 3 days for the death of other relatives.

Is there leave for religious purposes?

Muslim employees can take up to 30 days of unpaid leave to perform Hajj.

What is study leave, and who qualifies?

Study leave is available for UAE nationals enrolled in accredited education institutions. They can take up to 10 working days per year.

Are employees entitled to leave for national holidays?

Yes, employees are entitled to official national holidays, which are announced annually, such as for Eid and National Day.

What happens to unused annual leave?

Employees can carry over unused leave to the following year or request payment in lieu of unused leave, depending on company policy.

Can annual leave be divided?

Yes, employees can divide their annual leave with mutual agreement between them and the employer.

How is leave calculated for part-time employees?

Part-time employees are entitled to leave on a pro-rata basis, depending on the hours worked.

Can an employer reject an employee's leave request?

Employers have the right to reschedule annual leave based on work requirements, but the leave entitlement remains valid.

Is maternity leave applicable during the probation period?

Yes, maternity leave is granted irrespective of whether the employee is in their probation period or a permanent role.

What is the process for applying for leave?

Employees should submit a leave request to their employer, adhering to company policy and providing necessary documents, such as a medical certificate for sick leave.

What happens if an employee is frequently sick? Can they lose their job?

An employer cannot terminate an employee solely due to sickness during their legally allotted sick leave period. However, if an employee exceeds the 90 days of sick leave (full pay, half pay, and unpaid combined), termination may be considered under UAE Labour Law if supported by valid reasons.

Does annual leave in the UAE account for working days or calendar days?

Annual leave is calculated based on calendar days, not working days. This includes weekends and public holidays that fall within the leave period.

Can an employer decide the timing of an employee’s annual leave?

Yes, employers have the authority to schedule or reschedule annual leave based on business requirements, but they must ensure employees receive their entitled leave during the year.

Can employees choose their preferred time for taking annual leave?

Employees can request specific dates for their annual leave, but approval depends on the employer’s discretion and operational needs.

What happens to public holidays during an employee’s annual leave period?

If public holidays coincide with an employee’s annual leave, they are not deducted from the leave balance. For instance, if Eid holidays fall within the leave period, those days are counted as public holidays, not annual leave.

What happens to unused annual leave when the contract ends?

Upon termination of employment, employees are entitled to compensation for any unused annual leave. The payment is calculated based on their basic salary.

Can an employee take annual leave before completing a full year at work?

Yes, after six months of service, an employee may take annual leave at a rate of two days per month until they complete one year. The total leave balance accrues over time.

What is the formula to calculate leave salary in the UAE?

Leave salary includes the basic salary plus allowances. The calculation is as follows:
Leave Salary = (Basic Salary + Allowances ÷ 30) x Number of Leave Days.
For instance, if the monthly salary is AED 9,000 and the employee takes 15 days of leave:
(9,000 ÷ 30) x 15 = AED 4,500.

How can an employee obtain a valid medical certificate for sick leave?

Employees must visit a licensed medical facility or hospital in the UAE to get a valid medical certificate. This certificate must be submitted to the employer as per company policy, usually within two days of the absence. For long-term sick leave, additional approvals may be required.

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